Watching on a stream, I've seen 1 non-antagonist regular fat dwarf selling incense in Baldur's Gate (the city) wearing regular clothes. So it's definitely coded into the game, I just don't get why they won't let us play fat.
Because it takes a lot more work to make sure that the player animations will all work with yet another body type and skeleton and all of that, and that's a lot of work going into something only a small portion of players will profess to want, and they probably
also accurately guessed that if they let people play fat and then factored that into the in-game weight system that determines stuff like fall damage and damage inflicted by things falling on top of other things, people would twist it into some kind of fat-shaming thing and there truly is no winning in that horse-race until the year 2197 AD, so it really was just a simpler and safer decision not to bother?
That's my guess, anyway.